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The Big One: Google makes a $300M AI bet
One major startup story you need to know
As the world remains captivated by OpenAI's artificial intelligence tool ChatGPT, Google is making sure it doesn't fall too far behind in the AI race.
Google (NASDAQ: GOOG) announced recently that it invested $300 million in generative AI startup Anthropic, Bay Area Inno reports. The San Francisco startup describes itself as an AI safety and research organization working to "build reliable, interpretable, and steerable AI systems." It has an AI chatbot called "Claude," which is not open to the public but is widely considered a competitor to OpenAI's ChatGPT.
Google will reportedly take around a 10% stake in the company as part of the deal. Anthropic also has a large cloud contract with Google to power its AI software.
Anthropic was founded by Dario Amodei, who left OpenAI in 2021 after disagreeing with its founders over the mission of the company.
Barely two years old, Anthropic has already raised $1 billion to date, a sign of just how hot AI has become with startup investors (its backers also include Alameda Research, the now defunct hedge fund of Sam Bankman-Fried).
Google's investment in Anthropic comes as the tech giant announced this week its broader initiative to compete with OpenAI, including its conversational AI chatbot called Bard. Google said Monday it was opening Bard up to early testers and would make it "more widely available to the public in the coming weeks."
Clearly playing catchup, Google is hoping a better-late-than-never approach can help it leapfrog its rival Microsoft (NASDAQ: MSFT), which owns a large stake in OpenAI.
Startups to watch
Hot companies to keep your eye on
- In more AI news, San Francisco-based generative AI company Magic.dev raised $23 million. The company uses large language models like with OpenAI's ChatGPT to develop a software that can write lines of code based on a text prompt and make software engineers more efficient.
- JupiterDX is a Chicago health care analytics startup that wants to help people suffering from long Covid. It integrates with a person's wearable tech such as Apple Watch and Fitbit to track things like their energy expenditure and heart rate to help drive treatment plans. It recently raised a $500,000 investment from Drive Capital.
- Boston startup Osmo is working to give computers a sense of smell. Its software is trained to predict what a molecule smells like from its structure. It's raised $60 million in funding from Lux Capital and GV (Google Ventures).
- Columbus, OH startup Triple Whale raised $25 million from investors including Shopify. Its marketing analytics platform unites disparate sources of data and creates real-time dashboards so online retailers can better track marketing spending and its effectiveness, such as whether Facebook or TikTok are generating more returns.
- Digs, led by Portland, OR-area serial founders Ryan Fink and Ty Frackiewicz, raised $7 million for its software that lets residential home builders streamline communication and collaboration surrounding construction. The software collects and stores all the documentation and plans needed in home building to make it easily accessible for all stakeholders.
- Albany, NY-based MyForest Foods, maker of vegan bacon, is set to launch its next product: a mushroom-based alternate to beef jerky. The new offering comes on the heels of $50 million in funding the startup has raised in recent years.
- Houston startup Clutch matches online content creators with brands looking to boost their ware on social media. The startup has raised $1.2 million from backers including HearstLab, owned by media giant Hearst.
Weird and wired
Keeping you plugged into the lighter side of startup news
Phoenix-based hat startup Noggin Boss was a hit on Shark Tank last year, charming the judges with its oversized hats and landing a deal with shark Daymond John. But the company appears to be more than just a Shark Tank novelty. Noggin Boss' growth has skyrocketed, according to AZ Inno, after Washington Commanders running back Brian Robinson Jr. was seen wearing one of its enormous hats. From there, the company’s hats were also spotted on Buffalo Bills quarterback Josh Allen, ESPN’s Scott Van Pelt and University of Georgia football players following their SEC championship win in December.
An tip of the enormous cap to these founders for striking while the iron's hot.